Cleveland-Cliffs (CLF) Stock: Headed For The Top On Earnings

Cleveland-Cliffs Inc (NYSE: CLF) is having an incredibly strong start to the trading session this morning after announcing its earnings. Of course, the report proved to be a positive one, exciting investors who are sending the stock toward the top. Today, we’ll talk about:

The earnings report;

what we’re seeing from CLF stock as a result; and

what we’ll be watching for ahead.

CLF Announces Earnings

As mentioned above, Cleveland-Cliffs is having a strong start to the trading session after reporting its earnings for the second quarter of 2018. The report follows recent promises from management that folllowing a complete reconfiguration of its business strategy, the company would become profitable. Well, the company held to that promise. Here’s what we saw from the report:

Net Income & Earnings – During the second quarter, CLF definitely did not upset with regard to net income or earnings. In terms of net income, the company generated $165.1 million, showing impressive quarterly growth from the loss of $84.3 million reported in Q1 and beating analyst expectations. Earnings per diluted share proved to be just as positive. During the quarter, the company generated earnings in the amount of $0.55 per share, showing strong growth from a loss of $0.29 per sharein Q1.

Revenue – Finally, revenue was also strong. During the second quarter, the company generated revenue in the amount of $714 million, showing massive growth from the $239 million generated in Q1.

In a statement Lourenco Goncalves, CEO at CLF, had the following to offer:

Going forward, we expect 2019 to be a continuation of a great 2018, based on the renewed strength of American manufacturing, the multi-year positive impact of the tax reform implemented in 2018 in the United States, and our strong position as the supplier of iron ore pellets within the Great Lakes region. Our strategy is not only to protect our strong market position in the Great Lakes, but to grow and evolve with the continuously changing steel industry by supplying high-performance ore-based metallics to Electric Arc Furnaces, starting in 2020. This evolution should further improve our already tremendous profitability in the coming years.

What We’re Seeing From The Stock

One of the first lessons that we learn when we start to invest is that the news moves the market. In the case of Cleveland-Cliffs the news proved to be overwhelmingly positive. After all, the report shows incredible growth at the company, just what investors want to see. So, it’s no surprise that excited investors are sending the stock toward the top. Of course, our partners at Trade Ideas were the first to alert us to the gains. Currently (10:27), CLF is trading at $10.48 per share after a gain of $0.53 per share or 5.33% thus far today.

What We’ll Be Watching For Ahead

Moving forward, the CNA Finance team will continue to keep a close eye on CLF. In particular, we’re interested in following the story surrounding the company’s continued growth following a renovation in strategy. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!

About The Author

Joshua Rodriguez

Hey everyone, I'm Joshua Rodriguez. I'm the founder of CNA Finance as well as several other sites. If you'd like to connect with me, follow me on Google+ or Twitter! I'd love to see ya there. Also, if you're looking for top quality content for your blog, news outlet, or any other website for that matter, please reach out to me at Info@CNAFin.com!
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